Enterprise Risk Management Technology Guide 2023

Aon: Improving the modelling process

Actuaries face many modelling challenges in today’s fast-changing insurance landscape. But Aon’s ReMetrica platform can help them, says Paul Maitland, the provider’s head of risk software

How has Aon improved the modelling process for insurers?

Paul MaitlandReMetrica is designed to allow re/insurers to bring insightful and risk-based financial modelling to their decision making. The interface has been built to allow actuaries to design and create models quickly and efficiently, meaning less time is spent on building models, and more time in making decisions.

An example of ReMetrica in practice is where we created automation workflows for a large domestic Asian insurer. The insurer’s existing reserving and loss development processes, were spreadsheet-based with many manual steps.

Aon designed workflows that streamlined and integrated data extraction, processing, estimation and model building steps. This meant the insurer could independently calculate its own input parameters needed for IFRS 17 implementation and regulatory compliance.

How is Aon helping insurers prepare for IFRS 17?

In July, Aon announced it had added components to its ReMetrica capital modelling platform to help insurers implement IFRS 17, the accounting standard for insurance contracts.

The increased volume of data and complexity of calculations required for IFRS 17 mean that actuaries can no longer rely on manual processes and spreadsheets as they feed business-critical inputs into accounting systems.

Insurers therefore need to invest in new technology to bridge the gap between risk and finance.

ReMetrica’s new IFRS 17 components can support actuaries by automating calculations and cash flow projections with flexibility and a transparent audit trail.

They can also help carry out an eligibility test for the simplified model, and identify if a contract is onerous and track its account balance over time.

What are the key modelling issues for actuaries and insurers today?

We have seen demand on actuaries grow over the last few years and they are trying to do more, but with the same amount of resources.

Actuaries today need to be able to continually prepare data for all of the new accounting and solvency standards. The business needs them to price new types of risk, but also to use existing data better for pricing existing risks.

Our automation workflows are a great example of a tool which helps people to streamline their processes. Often data needs to be prepared to go into a model for calculations, then the data needs to be sorted, stored and sometimes passed on to other systems.

Workflows are a simple, but effective tool that can achieve this by allowing non-technical users to design custom processes without the need to do any coding.

With ReMetrica, users are now able to report and project balance sheets under IFRS 17 accounting rules as well as GAAP, and Solvency II fair value, and others.

We also see our powerful Application Programming Interface (API) being used by some reinsurers to embed ReMetrica into their pricing tools. ReMetrica is used as the calculation kernel of pricing systems.

What new risk management software and services or enhancements does Aon plan over the next year?

We are currently working on a number of major new developments, namely our super-fast Gen 3 components. We’ve kept catastrophe reinsurance modellers in mind and put a lot of focus into the planning of these new components, enabling them to run on both CPU and GPU servers for lightning fast run times.

in addition to this, we are extending our cloud hosting capabilities so that clients can just turn to Aon for hardware and software without having to go through lengthy IT budgeting processes.

The cloud offers the flexibility of accessing the latest technology with the additional benefit of only paying as and when it is needed. The service is also suitable for business continuity situations by allowing on-demand access to hardware from any location.

 

Paul Maitland

T: +65 65120216

E: [email protected]

Guide entries by Aon

FactSet Data & Analytics Solutions

Touchstone

Pricing - Tyche Pricing System & Aon Pricing Platform

Reserving - Tyche Reserving System

Aptitude IFRS 17 Solution

Aquantec Ocean

Atidot AI & Analytics Platform - Atidot OPTIMAL

ANNalytica

BW KIDS 4 PRIIPS Tool

SIImplify

With Profits Payout Monitoring Dashboard

Demographic Experience Monitoring Tool

ATOME: Particles

ATOME: Matter

ADVISE® Enterprise Risk Modeler

Conning Allocation Optimizer™

Conning Climate Risk Analyzer™

FIRM® Portfolio Analyzer

GEMS® Economic Scenario Generator

XSG

Detech Optimizer

DEvent

Dynamo Analytics - Psicle

Incisive Essentials - Xcellerator

Integrate

Milliman Mind

ModelSign

Solvency II Compliance Assessment Tool

STAR Solutions NAVI

STAR Solutions VEGA

Milliman Mind–IFRS 17

Arius

Datalytics-Defense

Nodal Claims Triage

Milliman Economic Scenario Generator

Milliman AccuRate Fleet

Milliman Bungalow

Milliman PinPoint

Curv

Milliman Long–term care Advanced Risk Analytics™ (Milliman LARA™)

Milliman M-PIRe Valuation & Securitization Software

AXIS™ Actuarial System

Scenario Generation Solutions

Climate Pathways

RiskIntegrity™ Suite

Oasis Loss Modelling Framework

GLASS

Economic Scenario Generator

Phinsys Insurance Suite

CoMeta

ChemMeta

Matching Adjustment Analytics Tool

R³S Software Suite

Mo.net Model Development Studio

Mo.net Operational Modelling Centre

Mo.net Quotations Service

Mo.net Cloud Modelling Service

Mo.net Mobile Modeller

IFRS Assess Enterprise

SolvencyTool

SolveXia

Governance, Risk & Compliance System

DataValidator

ResQ Financial Reporter

Unify

Igloo

Radar

ResQ

zeb.control

evo-insight - New Actuarial Modelling and Analytical Platform from Zenith

Asseco IFRS 17 Engine

Actuo SII Engine

IFRS17 Solution

Reserving solution

Solvency II solution

Pricing solution

CLARA Casualty Claim Platform (CLARA Triage, CLARA Treatment, CLARA Litigation, CLARA MSP Compliance, CLARA Optics)

Portfolio Manager

JBA Flood Modelling Technology

IFRS Assess and Risk Analyser

Numerix Insurance Suite

PATOne EDM

Quantee Platform

On-Demand CAT Modelling Services on the Oasis Platform

Graci

Riskonnect

FE Solvency II

Grace Connect GRC Suite

Monitaur

DeepCyc

ForeCyc

Metryc

Escali Financials and Escali Supervision

CALFITEC

Quotech Underwriters Workbench

FIS Insurance Risk Suite (formerly known as Prophet)

LCP InsurSight

SS&C Algorithmics for Insurance

True North Data Platform

Balance Sheet Management (BSM)

Economic Scenario Generation (ESG)

MavenBlue Enterprise Pricing Management (EPM)

Optalitix Models and Optalitix Quote

Montoux Actuarial Automation Platform

Iris Actuarial Platform

CyberCube Analytics - Portfolio Manager

R³S Model Packages

R³S Modeler

R³S Process Manager

R³S Development Manager

Decision Focus

Fathom's Product Stack

Capital - Tyche Capital Model & ReMetrica

Incisive Essentials - Concourse

VIPR INTARGA

VIPR Insights - Data Analytics

Zupervise

Protecht ERM

Slope Software

Camms GRC Software

Quantee next-generation insurance pricing platform powered by AI

Oversight360, a Sicsic Solution

RISKflo

End User Computing (EUC) and Model Risk Management Software with Inventory, Discovery and Monitoring Modules

XLAudit Spreadsheet Error Analysis and Data Integrity Software

ClimateMAPS

Financial Results Analyzer

Risk Explorer™

RiskAgility FM IFRS 17 Calculation Engine

Predictable Dynamics

Res-Solver™

RiskAgility Financial Modeller